§ Mr. OttawayTo ask the Secretary of State for Social Security when he intends to respond to the Social Security Advisory Committee report on his proposals for income support mortgage interest; and if he will make a statement. [31750]
§ Mr. Roger EvansI am today laying regulations before the House which set out the new rules relating to the payment of income support mortgage interest and other related housing costs from 2 October 1995. I have also responded to the report by the Social Security Advisory Committee. I am grateful to the committee for its report.
Although I have not been able to accept all the committee's recommendations, I have carefully considered its comments and those of the lending and insurance industries and others. I believe the package of measures I have presented today will ensure that private insurance and income support mesh together to provide more comprehensive cover for borrowers who lose their income. High-quality comprehensive insurance available to all borrowers will provide better protection than the current limited income support scheme, which stands to help only 30 per cent. of home owners who may find themselves out of work.
774WThese measures will stimulate insurers and lenders to continue to develop and improve on the mortgage protection cover they offer, while ensuring that benefit provision is retained for those borrowers and circumstances which the insurance industry cannot realistically cover, at this time.
We have already seen some in the lending industry responding positively to these measures. Now the final details have been settled, I look forward to seeing more lenders take similar steps. Indeed, it is their own interest as well as that of their borrowers to do so.